Currency Cloud is a London-based global payments platform built on smart technology that takes the complexity out of moving money. Sending money from one country to another either because of business or a family member sending money from abroad is a huge business, summing up to almost $700 million annually.
“Currency Cloud is a piece of infrastructure that is behind making international payments easier for all sorts of different kinds of payment platforms and provides simpler, cheaper, more transparent payments,” said Michael Laven, FOunder and CEO of Currency Cloud.
Currencycloud has built a set of remittance APIs that let any financial business integrate money transfer services into its platform. The company announced that they have raised $80 million Series E funding round backed by Visa. According to Laven, the company will use the cash injection to fuel its global expansion plans and grow its suite of products.
The firm’s latest series of funding was co-led by SAP’s venture arm Sapphire ad Visa, and also attracted backing from Google, the investment arm of the World Bank, French lender BNP Paribas and Japanese bank SBI. With that, Laven said that Asia will be a big focus for Currencycloud in the succeeding years.
To date, over $50 billion has been transferred between some 180 countries using Currencyclouds’s 85 APIs, which cover areas like inbound money collection, foreign exchange, outgoing payments, and digital wallet services managing multiple currencies and more. Laven said that the company has some 350 companies using its APIs as of the end of 2019 and has employed over 230 people.
As for the valuation, Laven said it was not being disclosed but he confirmed that the pre-money amount was higher than when it previously raised. Previously when Currencycloud has closed about $40 million funding, PitchBook estimated that the pre-money valuation is at $114 million and post-money at $184 million. That would imply that this Series E funding puts the London-based startup’s valuation at around $220 million. To date, Currencycloud has raised over $140 million from investors.
The company’s largest market is Europe, while it has been increasingly investing in North America and is now looking to expand into Asia, where fintech has seen significant adoption rates.
Currencycloud’s chief explained the market for business-to-business fintech — a sector that includes competing payment processors like Stripe, Adyen and Checkout.com — is “much larger than the consumer business” and “more profitable,” albeit “harder.”
Though his business is not yet in the black, Laven said “we could get there with the current round if we decided to,” but that it had more room to grow before becoming profitable. “Our emphasis right now is not on profitability, our emphasis is on the strength of our offering and expansion into other markets,” he said.
Laven also added that the company hopes to work with other companies that participated in the investment round. “We consciously raised money from strategic investors because we think the can help us with our expansion”, he said.
“I’m delighted to be joining the board of such an exciting technology company,” said Colleen Ostrowski, SVP and Treasurer at Visa, in a statement. “Currency cloud is reshaping the way that the platforms of the future are moving money around the world, and there is a huge potential for the company to drive further innovation in the cross-border payments industry.”